John D’Ambrogio

….you build a house!  Well, maybe it’s not the best transferee home, or very good for Chicago winters, but it’s a great concept that is gaining some traction as affordable emergency housing.

The idea – Take pallets – you know, those wooden things that hold “stuff” and are hoisted around by forklifts, and use them as a modular tinker toy set for building a home!  It’s really quite ingenious.  They’re made of wood, they are modular, you can use the space in between to blow in insulation, they are raised up from the ground, and there are MILLIONS of them around, many going into garbage bins and landfills.

A prototype build by I-Beam shows how practical it can be.  And artistic.  And architecturally compelling!  Quite cool actually.  Use it for the walls.  Use it for the ceiling.  The floor.  The bed.  These portable homes could be the answer to “tent housing” that usually accompanies disaster victims.  It’s a great idea!

John D’Ambrogio

How much does the average Illinoisan owe?  How does that compare nationwide, or to other big cities like New York or LA?  A new report by Lending Tree sheds some light.

We’re not too bad, actually.  IL has the 18th highest average loan per homeowner in the US.  WHOOPS –  $211,900, that’s significantly more than the average home value in Chicago ($162,800, according to Zillow).  Illinois was one of 13 states with average home loans in the $200Ks.  There are seven states with averages in the $300Ks (including, of course, NY and CA), and the big kahuna (no pun intended) is Hawaii – With an average home loan of $667K!!!!  Sounds like a classic case of supply and demand…

Lending Tree notes:  ”The average buyer in Hawaii, based on the average loan of $677,299 and an APR of 4%, would have a monthly payment for a 30 year mortgage (1 point) of $3,234 before taxes and insurance. The average payment for Mississippi would be $655 based on the closed loan amount.” Mississippi and Nebraska bring of the rear with lowest average loans, each with average home loans of less than $138K.

Actually, we’re a bit below the national average of $222,261.  How do you compare?

John D’Ambrogio

A few tips from guest blogger Thomas Rudy…

Moving is something that should be an exciting transitional moment in our lives. We are leaving something behind, and hoping for something better in the future. Unfortunately moving isn’t always the most stress free activity. If finding the perfect location, with the perfect amenities isn’t stressful enough, now comes the hard part. You are going to have to, in some way or another, move all of your belongings, keepsakes, and of course yourself into a brand new environment. It doesn’t seem as though it would be that overwhelming, but all of the little things can certainly add up. The key to a successful, stress free move, is being prepared. There are a number of essential things that you need to be doing and here are twenty of them that you surely don’t want to miss out on.

Number 1 – Find a Great Realtor Not all realtors are created equal. Some might not have the best intentions either. While it is obvious that they must make a buck on setting you up in a proper location, that shouldn’t compromise their level of service. A great realtor can help you in more ways that you may think. At the end of the day they will be more knowledgable about your new area, and hopefully can find a spot that meets all of your needs.

Number 2 – Start Early Procrastination is one of the biggest downfalls for getting a job done, being on time, and performing at your best. Moving is no different than any other life situation. If you start the process sooner rather than later you will have much more success, and the stress will feel almost non-existent.

Number 3 – Ask For Help There is nothing wrong with asking for a little bit of help. Order a pizza, call some friends up, and see how handy they are with a cardboard box or packaging tape. Getting friends together can help out tremendously and it can also be fun if you do it right.

Number 4 – Stay Organized Staying organized may seem obvious, but even I have moved things without marking what was in each box. This can be confusing and eventually frustrating if you have to constantly look through boxes to make sure what is inside of them. It may take just a few extra minutes of work to stay organized, but it will definitely save you time down the road.

Number 5 – Donate While you are moving, it is the perfect time to assess what items you are hanging on to that serve you no purpose. The good news is that you can give these items away to others that might find great value in them. This is a good way to decrease your move load, and do a few good deeds in the process.

Number 6 – Garage Sale Some items that you might not want, or do not have room for, still can have some considerable value. This is where a garage or estate sale can be so valuable. Not only are you parting with some of the clutter that is holding you back, but you also have the opportunity to make some money in the process.

Number 7 – Be Resourceful Moving costs can add up. Boxes, tape, bags, and even extra hands can add up to a bundle of money. You should try to use low cost of free items as much as you possibly can. At the end of the day, most of the moving supplies you will use are most likely going to be thrown out or recycled. No need to splurge on simplistic items.

Number 8 – Make Sure Everyone is On Board When you are moving it is important that everyone is on the same page. If one or more of your family members isn’t doing their part, packing up belongings it can be very difficult come moving day. The more information you relay on to other family members the better results you will have when you make your new transition.

Number 9 – Have a Plan Have a plan on moving day. Depending where you are coming from it can be as simple as, “We will stop for lunch at 1pm and then continue.” If you have a plan with certain timeframes in mind it makes the process smoother and you won’t find yourself unpacking boxes weeks down the road.

Number 10 – Preview the Community A general preview of the neighborhood can really tell you a lot. Almost certainly you have viewed the property you will be living in, but unless you get a scan of the area you cannot be certain what you have gotten yourself into. This will give you ideas of what you might need, as well as what you might be able to leave behind.

Number 11 – Research Nowadays we have the wonderful tool of the internet and Google to find out almost anything that we want to know. Do a little bit or research about your new surroundings. This includes public transit, shopping, restaurants, and much more. Make a game out of it. Plan out the next few weeks with certain spots you would like to visit or find out more information about.

Number 12 – Prepare for Complications While we always hope that relocating  goes 100% smoothly, that isn’t always the case. You have to be prepared for anything that can go wrong. Maybe your car breaks down, maybe the moving company is late, or just maybe your new place isn’t as move in ready as you had thought. Whatever the case, make sure you set aside a couple hundred extra bucks to plan for mistakes. If all goes well, you can use that for a nice night out on the town!

Number 13 – Talk to Neighbors This doesn’t mean you have to be nosey, but talking to neighbors can be a great way to find out useful information, and even make some friends. After all, you don’t want to miss out on the first garbage day.

Number 14 – Plan for Visitors Upon moving into your new property, you will want to showcase the place to friends and family. If everything goes well, you will have your “stuff” set up, know a few spots in the area, and then it will be your turn to be giving the tours. Try not to be a hermit in your new environment. Getting acquainted to your new surroundings can be tough, but opportunity will not come knocking at your doorstep.

Number 15 – Get Estimates From Movers Odds are you do not have a gas guzzling truck that will carrying all of your belongings from point A to B. You might need to higher some movers to help out. This is a necessary expense, but it doesn’t necessarily have to be expensive. Get a few quotes from various companies and see which price is the best.

Number 16 – Let Everyone Know If you are relocating, then you should let people know who might want to contact you. This includes current neighbors, family, friends, and colleagues. This can be very helpful and important when you want to ensure that people will not lose touch with you.

Number 17 – Find Storage Assuming that every item you have is not going to fit perfectly into your new environment, you might need to find a place to put it. Chicago self storage can be risky business, if you don’t find the right place. You want to make sure you find storage in the right area, for the right price.

Number 18 – Finish the Food When you are moving to a new property, odds are you will not be moving your food. Try to finish off what you have in the pantry and in the fridge to make sure nothing goes to waste. If you have to, invite friends over for a going away dinner party, and kill two birds with one stone.

Number 19 – Documentation There are going to be a number of things that you will want to document. This can be miles traveled for taxes, or even how you hooked up your complicated internet router. Pictures and notes can go a long way since remembering things may be hard to keep track of. You don’t have to document everything, but the most important items should be documented so referencing them later will not be an issue.

Number 20 – Don’t Burn any Bridges The transition from one place to another can be challenging, and it is important to leave the past in tact. Clean your old apartment, fix something in the house you sold, say good bye to neighbors, or whatever it is you have to do; just make sure that you leave everything in good standing order.

BONUS TIP! Change your mailing address! Relocating to a new area is a lot of fun. Make sure to keep it that way by planning ahead. A big move can be a big stress if you fail to execute the basics. There isn’t an exact science to stress free moving, but if you manage everything in this list accordingly, moving can be fun for you.

John D’Ambrogio

Allied Van Lines recently released it 2011 Annual Magnet States Report and we were, um, decidedly at one end of the spectrum.  Not the front end.

According to the study, their top state for net outbound moves – Illinois.  That contrasts the top for incoming moves, Texas, Florida and South Carolina.  We didn’t have the most, but we had the largest discrepency from outbound vs. inbound.

As the report cites:  ”Illinois usurped the title of top outbound state with the highest net relocation losses (more outbound than inbound shipments), followed by Pennsylvania, Michigan, New Jersey and New York – all part of the top 5 outbound states in 2010.   Illinois lost ground this year, with a net loss of 1,198 moves out of state, versus 2010 losses of 1,050.”

Of course, a lot of factors influence this, not the least of which is what accounts are measured and what their particular needs are in a given year.

Allied is owned by relocation giant Sirva, Inc.

Keep on truckin’

John D’Ambrogio

What’s new in Chicagoland Real Estate?  Take a look at the Q1 2012 State of the Market Report:

I welcome your comments!

John D’Ambrogio

Perri Knight, an agent in our Goldcoast Office, recently did a great bit of sleuth work to figure out some background on our great city’s neighborhood names….

What’s in a name? Sometimes, quite a lot. Sometimes, it’s all you have to go on. We all know how important our own names are to our identities, what about the name of a place? Or a building? Naming rights to stadiums are big ticket items. As Chicagoans, we were up in arms when the Sears tower became the Willis Tower, some vowed never to use the new name at all. People associate the name of a place with how they feel about it.

Although I grew up in Cleveland, I left after high school and returned many years later to discover that natives refer to buildings in downtown by their names—not their addresses. In other words, if you have a meeting with Sue, she may tell you she in in Key Tower, or the Halle Builidng, or the Hannah Building—two names much too similar for comfort in my opinion. If you don’t know where those building are, you were in trouble. We do that in Chicago too, but most of our prominent buildings are visible in the skyline so it’s a little easier to pinpoint where you are and where you need to go.

I recently had a friend visiting from out of the country who wanted to make sure that we saw everything there was to see on the “Magic” mile. Of course, Mag Mile can be magical but “The Magnificent Mile” is the accepted moniker, coined by Arthur Rubloff. And what about the neighborhoods that define our city? Several bear names of those that lived there or helped to found the area. The land which serves as Wicker Park was donated by brothers of the same name. Logan Square honors a former congressman and Civil War hero with that name. Some neighborhood names stem from the language native to those that first settled there. Pilsen is actually a city in the Czech Republic. Bucktown—this is my favorite—got its name because the largely Polish inhabitants had a habit of keeping goats. Guess what you call a male goat? Yep, a “buck”.

When you’ve spent some time in Chicago you realize that these names don’t just describe a geographic area but most people will say they can describe who lives in each neighborhood. I’ve noticed though that people tend to stick within their neighborhoods-especially if they grew up there- so their ideas of what other areas are like and who lives there can be skewed. As a non-native Chicagoan, I’ve had the pleasure of living in several different neighborhoods and I can easily say that every single one has wonderful, unique attributes that I enjoyed while I lived there. If you are just coming to the city, do your research but most importantly, send some time out in different neighborhoods—don’t rely on one friend’s advice, no matter how well meaning. Chicago has a depth and diversity of neighborhoods that I think is unmatched and it’s worth taking the time to explore them.

John D’Ambrogio

As much as I enjoy the Ga Ga, Saturday Morning’s NPR line-up (wait, wait, don’t tell me!) and Sunday’s Breakfast with The Beatles with Chicago’s own Aunt Terri Hemmert, it’s nice to know that every month I can also tune in and get some timely, accurate real estate coverage from the people who are right in the middle of it – real estate professionals!

Mike Zawislak & Phil Gleason of Downers Grove host a radio show the first Thursday of every month on WJOL-AM 1340.  Called “House Talk” the show discusses industry issues and let’s transferees, homeowners, renters – anyone with an issue or comment – call in and chat live on the air.  Foreclosures, short sales, market stats, all these and more are covered by the people who are living it.

Zawislak and Gleason are active real estate agents with Baird & Warner, the largest independent brokerage in Illinois and the 10th largest real estate firm in the US.  Guests include major players in Chicago’s real estate and finance industries.

You can track them down at 815.254.7300.

don't touch that dial

John D’Ambrogio

What’s new in Chicagoland’s rental market?  Is it a good time to be a renter of a landlord?  What are the different ways to find a rental?

Take a look at rental rates around the metro area.

Overview of the Chicagoland Rental Market from Baird Warner on Vimeo.

We welcome your thoughts!

John D’Ambrogio

Sunday’s Chicago Tribune carried an article by Mary Ellen Podmolik entitled “House Hunting fee to debut – Koenig and Strey’s agents’ bill for help may set precedent”

Effective today, Koenig & Strey Real Living will charge potential buyers a fee for the agent to work with them. Renters also will be charged if they find a rental and purchase at a later date.

This isn’t really new, but it’s new to Chicagoland.

Renters, meanwhile, will be charged extra costs if an agent helps them find a rental unit that they later purchase.

Reaction in the market has been decidedly….ambivalent.

The article quoted Mike Golden, co-owner of At Properties – “If it’s embraced, it’s a great idea.  One of two things happens: Either it’s like Bank of America charging a fee for an ATM, or everyone embraces it, and they’re leading the way for a new fee. My guess is it’s not going to go that way.”

Chris Eigel, CEO of Prudential Rubloff, is quoted as saying “Brokerages are under a lot of pressure at all levels.  Agents invest a lot of time and money working with buyers and sellers and frequently don’t get paid at all.”

As defined by the article:

Consumers who use a Koenig & Strey agent as their buyer representative will pay, at the agent’s choosing, an upfront retainer in an amount set by the agent.

If a purchase is made and the agent receives a share of the commission, the retainer will be returned to the buyer as a credit at closing.

SO it seems like the brokerage community is taking a “wait and see” attitude.  If it works, look for most companies to initiate this one way or another.

What I find interesting from a relocation point of view, is where the relo companies will stand on this.  They’re pretty adamant about not paying any add’l fees, even if they are possibly returned at the close.

What are your thoughts?

John D’Ambrogio

What’s going on in the world of distressed properties in the Chicago Market?  John D’Ambrogio , CRP,  discusses what occurred in 2011 and how it affects us in 2012.

Distressed Properties and Their Effect on the Market from Baird Warner on Vimeo.